The collision of global markets and social mood

Friday, May 23, 2014

Speculative Timing & The Line In The Sand

If there is a pullback today, 1886.06 looks like the line in the sand in what appears to be a developing impulse pattern to new highs. A break of 86.06 would not negate new highs, but would introduce other options, the most extreme being a 1:1 correction to 1856.52 or below.

A speculative timing scenario would be a shallow pullback today followed by another low-volume levitation into the new moon next Wednesday. The Russell 2000, Nasdaq 100, and Biotechs topped out in conjunction with the new moon in late March. Perhaps the next one is reserved for the Dow and S&P. The DAX and FTSE are closing in on their wedge highs too.

At 10 am EST April New Residential Real Estate sales will be reported. The expectation is 420K. After that the countdown to the long weekend begins. Volume could become even lighter that it's been. Again, not ever a healthy sign.

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